Uber Buys Dockless Bike-Share Company Jump

Uber is officially entering the dockless bike-sharing space. The ride-hail company has acquired electric bike-share startup Jump Bikes for an undisclosed amount.

Owning and operating its own bike-share service may help Uber mitigate the threat that e-bike and e-scooter services pose to the ride-hail company’s business, specifically for trips under three or so miles.

Bike services are a more affordable means to complete first- and last-mile trips to Uber’s suite of services. The deal will give Uber users access to Jump services.

Jump, founded by Ryan Rzepecki, had raised $11.6 million from investors including Menlo Ventures.

Other ride-share companies around the world already have bike share services. In India, there’s Ola, which offers bike share, and Didi and Grab have launched their own bike-share services.

Jump and Uber first began working together in February when Uber began offering some users the option to order a Jump bike in San Francisco.

Jump is the sole dockless bike-share operator currently available in San Francisco. The city has an exclusive contract with Ford’s GoBike for docked bike share. Jump doesn’t require a dock, which means it can be parked almost anywhere. As part of the pilot program, Jump is currently only allowed to operate 250 bikes in the city. Per its permit, the company should be able to double the number of bikes in the city by September.

In January, the company was the only dockless bike service to receive a permit to operate in San Francisco. In February, the first full month of operation, Jump says the company saw around four trips for each of its 250 bikes a day at an average distance of 2.6 miles per trip.

Jump, previously called Social Bikes, only recently began operating its own fleet of dockless bikes. Prior to that it sold dockless bikes to a variety of clients like small fleet operators…